New Opportunities Arise
Today marks the inception of fresh options for Netflix Inc (Symbol: NFLX) investors, set to expire on May 10th. The mood among shareholders is expectant, as the options chain unveils a put and a call contract that have already piqued interest.
The Put Contract
At a strike price of $600.00, the put contract boasts a bid of $27.35. Should an investor opt to sell-to-open this put contract, they signal readiness to secure the stock at $600.00. In return, they stand to pocket the premium, pegging the cost basis at $572.65 (pre-broker commissions). For those eyeing NFLX shares, this maneuver presents an enticing prospect, offering a slight departure from the current share price of $603.18.
As the $600.00 strike holds a marginal 1% markdown from the ongoing trading rate of the stock, the put contract harbors the chance to expire fruitless. Statistical data hints at a 57% likelihood of this occurrence. Over time, Stock Options Channel will monitor these odds, plotting a visual representation on their platform. Should the contract close without value, the premium translates into a 4.56% yield on the capital committed, or 38.69% on an annualized basis — an insight Stock Options Channel fondly dubs the YieldBoost.
A Glimpse Back
An illustrative chart delves into the trailing twelve-month trading patterns of Netflix Inc, casting a spotlight on the $600.00 strike amidst historical data.
The Call Contract
Conversely, the call contract resting at the $620.00 strike showcases a bid of $28.05. Investors mulling over NFLX stocks at the present $603.18/share level can seize the opportunity to partake in a “covered call” by selling-to-open. By committing to sell the stock at $620.00 and reaping the premium, a total return sans dividends of 7.44% could be on the horizon if the stock is called away at the May 10th expiration.
The $620.00 strike’s 3% premium over the current trading rate bears the potential for the covered call contract to falter, leaving the investor with both stock shares intact and the premium in hand. Initial calculations pin the odds of this at 52%. Stock Options Channel pledges to chart these odds over time, alongside a comprehensive review of the option contract’s trading history.
If the covered call contract lapses unprofitable, the premium would amount to a 4.65% bonus return for the investor, or 39.47% on an annual basis — tagged by Stock Options Channel as the YieldBoost.
Volatility Musings
The implied volatility for both put and call contracts hovers around 41%. In parallel, the actual trailing twelve-month volatility, reviewing the last 251 trading days and dipping into today’s $603.18 price point, stands at 35%. Investors with an appetite for put and call options guidance are urged to explore StockOptionsChannel.com for possible avenues.
